Denver reveals US$900 million South Terminal plans

The US$900 million redevelopment programme includes a downtown rail link, a signature rail bridge and a plaza

US.Denver International Airport has unveiled plans for its South Terminal Redevelopment Programme.

The US$900 million South Terminal Redevelopment Programme is expected to create more than 6,600 jobs and is scheduled for completion in 2016.

The Redevelopment Programme includes the construction of a train station to connect the airport to downtown Denver, a signature rail bridge and a plaza. The plans also include a 500-room hotel and conference centre connected to the Jeppesen Terminal.

Denver International is one of the few major airports in the world without a passenger rail link to the downtown city core. The train station, plaza and hotel will form an integrated complex located directly south of and adjacent to the existing Jeppesen Terminal.

At present the South Terminal Redevelopment Programme Phase I, which includes the hotel, train station, signature bridge and plaza, is estimated to cost US$650 million. This estimate is based on a conceptual design, and individual projects will be developed after analysis has proven their financial viability.

Currently Denver International is one of the few major airports in the world without a passenger rail link to the city

The signature rail bridge is expected to be finished by early 2013 and the terminal station two years later

Phase II of the airport’s redevelopment programme includes a new parking structure and further renovations to Jeppesen Terminal Great Hall. If approved Phase II of the programme is estimated to cost an additional US$250 million, giving an overall estimated total of US$900 million for the project, less than the US$950 million originally projected.

The programme will be primarily financed by General Airport Revenue Bonds which will be repaid from airport revenues. No taxpayer and no General Fund money from the City will be used for the programme. The City is in the process of reviewing the various programme components to further refine the figures and develop a financing plan.

Denver Manager of Aviation Kim Day said: “Denver International Airport is one of the most envied facilities in the industry. With the addition of the rail connection to our city core and the terminal hotel we will truly be competitive with major international airports worldwide.”

“The design complements the existing iconic architecture and provides an enhanced passenger experience while improving the connectivity for passengers and employees alike.”

“We are committed to fiscal responsibility for this project. We will keep a close eye on costs and we will not move forward with any project that does not make good financial sense. In addition, no taxpayer or General Fund dollars will be used to complete any of the projects in the South Terminal Redevelopment Programme,” Day added.

The redevelopment programme is expected to create more than 6,600 jobs and is scheduled for completion in 2016

The hotel, scheduled to be completed in late 2013, is expected to create about 1,000 construction jobs and 225 permanent hospitality jobs, and will potentially provide the City with up to US$2 million in annual tax revenue.

Revenue generated by the hotel will be used to pay off bonds used for its construction costs. Additional non-airline revenue generated by hotel amenities and plaza retail locations will help to maintain a competitive cost structure for Denver International’s airline partners, the airport said.

The signature rail bridge is expected to be finished by early 2013, and the terminal station two years later; the train service, operated by the Regional Transportation District (RTD), is scheduled to be opened to passengers in 2016.

RTD’s train will transport passengers between downtown’s Denver Union Station and the airport. The 22.8-mile airport corridor is the first for RTD to use commuter rail technology, with larger and heavier cars than the existing light rail system.

Over 5,400 jobs are expected to be created at peak construction in 2012. It is being financed through a public-private partnership between RTD and an international team led by Fluor and Macquarie, which will operate the system for RTD.